Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
In a release, the shareholder said he wants to nominate five new independent directors and said the move comes “with a goal of replacing the majority of the currently entrenched legacy Hexo board members and turning around the underachieving company’s disappointing performance.”
Mr. Arviv currently owns about a 2-per-cent stake in Hexo and said in the release he “has been waging a battle with management at the cannabis company over the past months,” since it bought Redecan last summer.
Extendicare Inc. (EXE-T) announced a deal to sell its retirement living operations to Sienna-Sabra LP, a partnership formed between Sienna Senior Living Inc. (SIA-T) and Sabra Healthcare REIT (SBRA-Q) for $307.5-million.
“With today’s announcement, we are repositioning Extendicare to focus on growth in our long-term care and home health care segments where we can leverage our deep expertise and scale to drive improved performance and high-quality care for seniors across Canada,” stated Extendicare CEO Michael Guerriere.
Sienna announced separately it will buy a 50-per-cent ownership interest in the portfolio for $153.75-million.
“The portfolio is an attractive expansion opportunity for Sienna in its existing Ontario markets, featuring high-quality, recently built retirement residences,” Sienna stated. “It also provides an entry into the Saskatchewan market with immediate scale and a platform for further expansion. "
Athabasca Oil Corp. (ATH-T) reported preliminary 2021 year-end results and said it has completed the repayment of $32-million (US$25-million) term debt in advance of its first scheduled term debt repayment in May “resulting in significant redemption and interest savings.”
The company also said it expects to generate about $900-million of free cash flow during the next three years and aims to be in a net cash position at year-end 2022 at current commodity prices. It also expects to achieve its target outstanding term debt of US$175-million (50-per-cent reduction) in the first half of 2023, at which time it says it “intends to direct a portion of free cash flow to its shareholders.”
Athabasca said it will assess market conditions “to determine the best method to enhance shareholder returns, which could include a dividend, share buybacks, further debt reduction or a combination.”
The company said it expects adjusted EBITDA of about $245-million for fiscal 2021; adjusted funds flow of about $185-million and free cash flow of about $90-million. For 2022, the company said it expects to generate about $350-million of adjusted EBITDA, about $300-million of adjusted funds flow and about $180-million of free cash flow.
Its net loss for the quarter ended Oct. 31 was $4.2-milion or 9 cents per share versus a loss of $1.3-million or 46 cents. Analysts were expecting revenue of $52.5-million and a loss of 15 cents per share, according to S&P Captial IQ.
Dirtt Environmental Solutions Ltd. (DRT-T) announced it expects fourth-quarter revenue to be approximately $42-million. The company said it’s consistent with its prior guidance. Analysts are expecting fourth-quarter revenue of $41-million, according to S&P Capital IQ.
The company said full-year revenue is expected to be approximately $146.7-million. Analysts are expecting revenue of $145.8-million.
Wallbridge Mining Company Limited (WM-T) announced a $15-million financing and $12-million private placement. The company said it has an agreement with BMO Capital Markets, on behalf of itself and a syndicate of underwriters, which has agreed to buy 27.3 million charity flow-through common shares for 55 cents each.
Wallbridge said the non-brokered private placement will include national flow-through common shares issues at 37 cents each and Quebec flow-through shares at a price of 41 cents. It said Kirkland Lake Gold Ltd. will participate in the offering to maintain its existing 9.9-per-cent ownership position in the company. William Day Construction Limited is expected to participate in the offering, the company stated.
The gross proceeds from the offerings will be used to support its exploration program at its Detour-Fenelon gold property.
The company said the most recent quarter included non-cash share-based payments of US$2.5-million compared to US$1.2-million for the comparable period in 2020, recognized for stock options granted and vesting.
Resolute Forest Products Inc. (RFP-T) announced a net loss for the quarter ended Dec. 31 of $128-million, or $1.64 per share, compared to a net loss of $52-million, or 63 cents per share a year earlier.
Sales were $834-million in the quarter, an increase of $65-million from the year-ago period and below expectations of $876-million.
Excluding special items, the company reported net income of $37-million, or 48 cents per share, compared to net income of $45-million or 55 cents per share a year ago.
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